The world is not “one size fits all” and this is particularly true when it comes to business systems. As AIG has learned, it’s not just about “cloud” or “on premise”; rather it’s about how to merge the two into a comprehensive, efficient system. With broad source to settle initiatives, global strategies to expand compliance, and world-wide process enhancement, AIG has created a “hybrid” strategy that leverages the best of all worlds. In this round-table discussion they will share their thinking, decisions, lessons and steps taken in their quest for the “holy grail” of business efficiency. Learn more about Ariba LIVE at http://spr.ly/LIVE2014LV-d

1. The Proven Value of the Business Network
– Enhancing Your Existing Systems
Gary Slavin, VP – eProcurement Systems & Operations, AIG
Gary.Slavin@aig.com
March 18, 2014
#AribaLIVE
@ariba
© 2014 Ariba – an SAP company. All rights reserved.

2. The Proven Value of the Business Network
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AIG
Gary Slavin
VP – eProcurement Systems & Operations
© 2014 Ariba – an SAP company. All rights reserved.

3. The Proven Value of the Business Network
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AIG
Leading international insurance organization serving customers in
more than 130 countries
90+ years in operation
98% of Fortune 500 companies served
Serves commercial, institutional, and individual customers
through one of the most extensive worldwide property-casualty
networks of any insurer
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© 2014 Ariba – an SAP company. All rights reserved.

4. Ariba Solutions Deployed
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Ariba On Demand Suite including:
Ariba Spend Visibility
Ariba Sourcing
Ariba Contract Management
Ariba P2P
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PO integrated with SAP
© 2014 Ariba – an SAP company. All rights reserved.

5. Ariba History at AIG
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
5
Event
AIG Licenses Ariba Buyer
AIG Classic & SAI live
Valic & AIG Annuity live
AIG licenses additional Ariba Modules
Domestic Life and AGLA live
Extended implementation Plan developed & Business Case drafted
Business Case finalized
Buyer upgraded to Release 8.1
Analytics moved to production
Invoicing Upgrade Started
Contracts Compliance
Invoicing Module
HK and UGC Rollout
Ariba Buyer 8.2
Sourcing and Contracts move to Ariba On-Demand
Ariba Buyer 9r
Development: FAQs, QRGs, Ariba Web, Tips & Tricks, Manual, Best Practices
SAFG & UGC move to Ariba 9r
US, UK, EMEA Transition to Ariba On-Demand
Rollout P2P to Spain, Italy, Germany, South Africa
France, Greece, LATAM, Japan Transition to Ariba On-Demand
Continued global deployment
© 2014 Ariba – an SAP company. All rights reserved.

6. Key Recent Accomplishments
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Migrated from 9r1 to On Demand
Suite integration for upstream/downstream
Implemented two realms:
SAP (US + UK) – P2O
Non SAP (ROW) – P2P
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EMEA rollout (UK, Spain, Italy, Germany, SA + France, Greece 2014)
Seamless integration of SAP for receiving / invoicing using
SAP Ariba Network connector
© 2014 Ariba – an SAP company. All rights reserved.

7. Hybrid Solution
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Req to PO in Ariba
Receiving/Invoicing moved to SAP
Targeting single standard invoice process across all areas
Single global operations team/tools
Leveraging strengths of each component through
seamless integration
Ariba Network portal used for vendor access from both platforms
7
© 2014 Ariba – an SAP company. All rights reserved.

8. E-Procurement Themes for 2014
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Globalize
• Continue Global Rollout of Tools, Processes, Policies, & Operations
• Complete Functional Alignments (i.e. Accounts Payable – Shared Service Centers)
• Implement repeatable processes – All Regions and with PSS
Standardize
• Execute on Process Improvement Initiatives
• Leverage templates throughout the process, avoiding rework and improving cycle times
• Share data from system to system, minimize data entry duplication
Streamline
• Ensure 5 approval limit is implemented is all areas
• Ensure effective hand offs and accountability throughout the 5-Step Sourcing Process
• Drive improvements to KPI baselines established in 2013
Measure
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• Employ workflow functionality throughout the Sourcing Process to obtain a measurable
End-To-End Sourcing Process – Highlighting opportunities for improvement
© 2014 Ariba – an SAP company. All rights reserved.

9. Future Target State
ID & Develop
Strategic
Opportunities
Supplier
Information
• Portal
• Registration
& On Board
• Risk
Management
• Performance
Management
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Source &
Negotiate
Spend
Visibility
• Commodity
Codes
• Market Intel
• Analysis
• Dashboard
Sourcing
• Compliance
• eRF(x)
• Category
Management
• Performance
• Contracts
Enterprise
• Knowledge
Repository
• Ariba
Discovery
• Reporting
Analysis
© 2014 Ariba – an SAP company. All rights reserved.
Contract
Contracts
• Compliance
• Repository
• Authoring
• Tracking
Contracts
(expired)
Procure
Procure
• Requisitions
• Catalog
• Workflows
• Approvals
• Compliance
Invoice &
Pay
Invoice and
Pay
• PO
Automation
• PO Flip
• Invoice
Automation
• PO & Non
PO
• Compliance
Leverage
Spend
Supplier
Connectivity
• Enablement
• Visibility of
Status
• Invoicing
Capabilities

10. Metrics / KPIs
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Help desk – quantity of issues / root cause analysis and cycle time
Supplier / catalog enablement
Spend under management / through e-procurement tools / PO vs non-PO
Spend under contract and non-compliance
Catalog vs non-catalog – spend and transactions
Sourcing events by commodity/region
Contracts by type/region
Pipeline savings and reporting
Approval cycle times
Spot-buy transactions / savings / cycle time
© 2014 Ariba – an SAP company. All rights reserved.

11. Benefits
• Opportunity for vendor rationalization and controls
• Savings through contract/catalog pricing compliance
• Facilitates partnership with key suppliers
• Automated processes and efficiencies / improved cycle times
• Reduced manual entry, errors and rework
• Automated, enforced workflows
• Fully auditable and reportable
• Integrated modules provides exponential opportunities for benefits
• Detailed spend visibility for sourcing negotiation – Knowledge is Power!
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© 2014 Ariba – an SAP company. All rights reserved.

12. Lessons Learned
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Executive sponsorship and mandate essential
Organizational alignment to facilitate common goals
Non-compliance reporting to identify opportunities
Change management critical – dedicated team
Get suppliers involved early – content enablement
Some suppliers reluctant to participate and require leverage
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Third-party implementation and operations partnerships – clearly defined
R&R and fully integrated teams
© 2014 Ariba – an SAP company. All rights reserved.